Midwich enters Iberian market through Earpro acquisition

Midwich Group announced the completion of the acquisition of a majority stake in Earpro, a value-added distributor of audio, video and lighting solutions in Spain and Portugal, on Friday.

The AIM-traded firm had announced the acquisition on Wednesday, saying at the time that it valued the equity of Earpro at approximately €11m, including a net cash balance of approximately €3.2m.

Earpro is headquartered in Barcelona with a team of 45, and it generated unaudited revenues of around €21m in 2016 which represented growth of around 7% on 2015, Midwich said.

“The acquisition of Earpro marks Midwich's entry into the Spanish and Portuguese markets, enabling the group to trade with a broad customer base across a variety of customer segments,” managing director Stephen Fenby said at the time of the announcement.

“The addition of this territory to the group's portfolio increases Midwich's geographical coverage, with the Group operating in territories which account for approximately 60% of the European audiovisual market.

“Earpro's expertise and reputation in the professional audio market represent a strong complementary fit to the group's activities.”

The acquisition was funded from Midwich’s existing cash resources.